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Infrastructure and decreasing cost industries

Assume that government in a developing nation enables start-up some firms to manufacture at lower costs by building infrastructure (for example, power grids and transportation networks), as well as also facilitates learning-by-doing through building public schools to support literacy. When more firms enter the influenced industries, these industries are more probable to: (i) be constant cost industries. (ii) experience diseconomies of scale. (iii) be increasing cost industries. (iv) experience economies of scale. (v) be decreasing cost industries.

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